Sobeys' contribution to sales rose 11 percent to C$4.34 billion from C$3.98 billion. The growth was a result of the acquisition of 236 retail gas locations and related convenience store operations in the fourth quarter, the company said.

Canadian grocers are under pressure as Wal-Mart Stores Inc expands its food offerings in the country and will see even more competition when Target Corp kicks off its aggressive Canadian roll-out in the spring.

But Sobeys may be somewhat insulated, thanks to its contract to supply some of Target's groceries.

Empire shares were up about 3 percent at C$60.05 in morning trading on the Toronto Stock Exchange.